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Monthly Income Scheme |
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8% interest payable monthly |
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Name of the Scheme |
Interest |
Maturity Period |
Limit of Deposit |
I. T. Benefit |
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MIS |
8% monthly |
6 years |
Min. Rs. 1000 Max. Rs. 3,00,000 for Single Account & Rs. 6,00,000 for Joint Account (w.e.f. 01.06.2000) The maximum limit to be held by an individual will be the deposits in his/her single accounts together with his/her share of the deposits in the joint account which should not exceed Rs. 3,00,000 |
In the Union Budget 2005 the Tax benefit is given upto the deposit of Rs. 1,00,000 |
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Opening Of Account |
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A Monthly income Scheme may be opened by depositing Rs. 1000 or multiples thereof. Any number of accounts may be opened. The total deposit shall not, however, exceed Rs. 3,00,000 in case of a Single Account and Rs. 6,00,000 in case of a Joint Account. |
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Account can be opened in any departmental Post Office and can be transferred from one Post Office to another. |
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Deposit may be made in cash or by cheque or by demand draft. |
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Payment Of Interest |
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Deposit under monthly income scheme shall bear interest at the rate of 8% per annum payable monthly. |
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If an account holder so desires, his monthly interest may automatically be transferred to his Savings Bank Account at the same Post Office subject to the condition that by so transferring, the interest, maximum limit on balance in the Savings Bank Account is not exceeded. |
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Premature Closure of Account |
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An investor may, at any time, after expiry of one year from the date of opening of the account, close the same and withdraw the entire deposited amount. If any amount is withdrawn before 2 years, an amount equal to 3.5 per cent of the deposit shall be deducted, but due monthly interest @ 8% will be paid. |
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If premature withdrawal is made after 3 years from the date of deposit, there shall be no deduction of principal of due monthly interest. |
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In case of death of a depositor before maturity, account may be closed and deposit before maturity, account may be closed and deposit refunded along with interest up to the month preceding the month in which refund is made. |
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Illustration |
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If an investor deposits Rs. 60,000 under the scheme, say, on 17th August 2005, he will get interest of Rs. 400 on 17th of each month starting from 17th September 2005 and up to 17th August 2011. |
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RushatiINDIA & Associates 60(24/16) Vivekananda Road, Sukantapally PO: Sheoraphuli, Dist: Hooghly, WB, India Pin: 712 223 Phone: +91- 9433235073 Email: [email protected] |